KUALA LUMPUR: HwangDBS Vickers Research is maintaining its "buy" call on Petronas Gas Bhd (PetGas) with the target price raised to RM16.90 a share from RM15.50 earlier due to promising outlook in the oil and gas industry.
The research house, optimistic over the company's strong earnings growth from this year's financial year onwards, said the promising outlook for the industry is supported by new pipelines and regas plants.
It said strong earnings growth will be led by contributions from the Malacca regas plant in FY2012 and the Sabah power plant in 2013, whose shares eased four sen to RM15.40 on Bursa Malaysia at 11.30am yesterday.
Petronas Gas will be the prime beneficiary with the planned new pipelines in Terengganu and new regas plants in Pengerang and Lumut, it said in a statement.
It said the company was a main player in the current volatile oil and gas market and might be rerated with imminent news of project awards. Bernama
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